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Journal Entries for Accounts and Notes Receivable Pomona, Inc., began business on January 1 . Certain transactions for the year follow: Jun . 8 Received

Journal Entries for Accounts and Notes Receivable
Pomona, Inc., began business on January 1. Certain transactions for the year follow:
Jun.8 Received a $30,000,60 day, six percent note on account from R. Elliot.
Aug.7 Received payment from R. Elliot on her note (principal plus interest).
Sep.1 Received an $18,000,120 day, seven percent note from B. Shore Company on account.
Dec.16 Received a $14,400,45 day, eight percent note from C. Judd on account.
Dec.30 B. Shore Company failed to pay its note.
Dec.31 Wrote off B. Shores account as uncollectible. Ponoma, Inc. uses the allowance method of providing for credit losses.
Dec.31 Recorded expected credit losses for the year by an adjusting entry. Accounts written off during this first year have created a debit balance in the Allowance for Doubtful Accounts of $24,500. An analysis of aged receivables indicates that the desired balance of the allowance account should be $21,300.
Dec.31 Made the appropriate adjusting entries for interest.
Required
Record the foregoing transactions and adjustments in general journal form. (Round all interest income calculations to the nearest dollar.)
General Journal
Date Description Debit Credit
Jun.8 Answer
Notes ReceivableR. Elliot
Answer
30,000
Answer
0
Answer
Accounts ReceivableR. Elliot
Answer
0
Answer
30,000
Received a 60-day, 6 percent note on account.
Aug.7 Answer
Cash
Answer
31,800
Answer
0
Answer
Interest Income
Answer
0
Answer
31,800
Notes ReceivableR. Elliot Answer
0
Answer
0
To record receipt of principal plus interest from R. Elliot.
Sep.1 Answer
Notes ReceivableB. Shore Company
Answer
18,000
Answer
0
Answer
Accounts Receivable - B. Shore Company
Answer
0
Answer
18,000
Received a 120-day, 7 percent note on account.
Dec.16 Answer
Notes ReceivableC. Judd
Answer
14,400
Answer
0
Answer
Accounts ReceivableC. Judd
Answer
0
Answer
14,400
Received a 45-day, 10 percent note on account.
Dec.30 Answer
Accounts Receivable - B. Shore Company
Answer
0
Answer
0
Answer
Interest Income
Answer
0
Answer
0
Notes ReceivableB. Shore Company Answer
0
Answer
0
To record dishonoring of B. Shore Company's note.
Dec.31 Answer
Allowance for Doubtful Accounts
Answer
0
Answer
0
Answer
Accounts Receivable - B. Shore Company
Answer
0
Answer
0
To write off B. Shore's account.
Dec.31 Answer
Bad Debts Expense
Answer
3,200
Answer
0
Answer
Allowance for Doubtful Accounts
Answer
0
Answer
3,200
To record allowance for uncollectible accounts.
Dec.31 Answer
Interest Receivable
Answer
24,500
Answer
0
Answer
Interest Income
Answer
0
Answer
24,500
To accrue interest income on December 16 note.

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